Re: bunkruptcy dismissed? - Posted by Tim- chi.
Posted by Tim- chi. on September 11, 2003 at 14:38:51:
It’s good to get legal advice before you proceed. A few things that you may want to review with the seller: you mention that the property is not in the bankruptcy, however, the seller must list all assets/liabilities and therefore the property is likely considered part of the bankruptcy estate. It sounds like the seller failed to pay the mortgagee who in turn filed a motion with the bankruptcy court to proceed with the foreclosure. You can still buy the property, in fact you now can do so without needing to get the court to agree to the sale which is good because from my experience the bankruptcy Trustee will want some consideration to allow the sale which will then be used to pay other creditors.
Be sure you’re getting clear title- if he was in bankruptcy he may have other liens/judgments against him. Are you buying with cash/loan, or sub2? If sub2 you may want to be careful given the chance he may refile for bankruptcy- i.e if he previously filed a chap. 13 he may file a chap.7 which could lead the new Trustee to scrutinize your deal.
Just some things to consider. Good luck.